Apple To Be Charged $15 Billion As Back Tax By Ireland

Apple has made a deal with Ireland to pay its back taxes but the money will be held in escrow while it appeals an EU ruling

Apple will start implementing an August 2016 European Commission ruling, paying Dublin billions of Euros in back taxes.

While the appeals are still ongoing, the European Commission ordered Ireland to begin collecting Apple's taxes on January 3, and the organization referred Ireland to the EU Court in October for failing to comply with the deadline.

However, last year, the Commission came to the ruling that this is an example of illegal state aid and threatened Apple with harsh consequences if it didn't cough up $13 billion in owed taxes.

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The Government has finalised an agreement with Apple over the management of an escrow account into which its contested €13 billion tax bill will be paid.

The government said in a statement late on Monday (4 December) that an agreement had been reached "in relation to the framework of the principles that will govern the escrow arrangements".

Both the Irish Government and Apple have appealed the Commission's ruling. According to the EU, the tax deal allowed Apple to pay nearly nothing in tax on its European profits between 2003 and 2014. Then, Ireland disagreed with the Commission's analysis and appealed the decision.

KitGuru Says: Apple may start setting the money for this aside soon, but it seems clear that it still wants to get out of it.

Ireland built its economic success on being a low tax entryway for multinationals seeking access to the European Union, and is concerned that collecting the back taxes could dent its attractiveness to firms.

However, Apple added that it remains confident that the court will overturn the commission's decision after reviewing and reading the evidence they have presented in their defense.

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